São Paulo – The number of enterprises operating in free zones across the United Arab Emirates was up 4.4% in the 12 months through February 2021, according to the UAE’s National Economic Register (NER), an arm of the Ministry of Economy, official news outlet WAM reported. Pictured above is the Khalifa Industrial Zone (KIZAD) in Abu Dhabi.
Currently there are roughly 60,600 companies active in UAE free zones. The government imputes this to the “successful business continuity and disaster recovery plans adopted by the UAE to lure foreign business to work across the nation amidst the global economic slowdown triggered by the COVID-19 since the second quarter of 2020.”
NER numbers show that enterprises in free zones accounted for over 8% of total registered businesses in the UAE by mid-February 2021. Most free zone-based companies are in either Abu Dhabi or Dubai.
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WAM points out that there are over 44 free zones in the UAE. They are mostly designed to attract foreign investment by offering easy start-up, labor and immigration procedures. The UAE allows 100% business ownership by foreigners at free zones, as well as elsewhere in the country in some sectors and activities.
Translated by Gabriel Pomerancblum
